Dollar General Corporation stock research
FY2025 Q1
Dollar General (DG) Gross Margin — Quarter Ended May 2, 2025
Revenue and gross profit both increased relative to the prior quarter and the same quarter last year, while cost of revenue moved higher on a year-over-year basis but was slightly lower sequentially. As a result, gross margin improved compared to the immediately preceding quarter and was higher versus the year-ago period.
Gross margin takeaway
Quarter ended May 2, 2025 · FY2025 Q1
Revenue and gross profit both increased relative to the prior quarter and the same quarter last year, while cost of revenue moved higher on a year-over-year basis but was slightly lower sequentially. As a result, gross margin improved compared to the immediately preceding quarter and was higher versus the year-ago period.
- The most observable driver of gross margin improvement is the relationship between revenue growth and cost of revenue: revenue rose more than cost of revenue on both a sequential and year-over-year basis.
- Compared to the prior quarter, gross profit increased while cost of revenue declined, leading to an improved gross margin. Relative to the same quarter a year ago, both revenue and cost of revenue increased, but revenue grew faster, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.0%
Gross profit
$3.2B
Revenue
$10.4B
Cost of revenue
$7.2B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+0.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 2, 2024 | $10.2B | $3.1B | $7.2B | 30.0% |
| Nov 1, 2024 | $10.2B | $2.9B | $7.2B | 28.8% |
| Jan 31, 2025 | $10.3B | $3.0B | $7.3B | 29.4% |
| May 2, 2025 | $10.4B | $3.2B | $7.2B | 31.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2025
+1.6 pts
Year-over-year change
May 3, 2024
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin improvement is the relationship between revenue growth and cost of revenue: revenue rose more than cost of revenue on both a sequential and year-over-year basis.
Compared to the prior quarter, gross profit increased while cost of revenue declined, leading to an improved gross margin. Relative to the same quarter a year ago, both revenue and cost of revenue increased, but revenue grew faster, resulting in a higher gross margin.
Monitor the trajectory of cost of revenue relative to revenue in future quarters to assess whether gross margin can sustain its improved level.